Cherat Cement Posts Strong Profits After Increase in Market Share

Cherat Cement Company Limited (CHCC) has announced a profit of Rs 743.44 million for the second quarter that ended on December 31, 2017, up 19.75% from Rs 620.82 million in the same period of the previous year, according to a company notice sent to Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs 4.21 from an EPS of Rs 3.51 in the same period last year.

The company also announced a cash dividend of Rs 1.00 per share.


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Gross profit for the quarter was Rs 871 million, down by 11.93% as compared to the previous year. This was due to the increase in cost of sales which saw a massive increase of 112.03%.

The company also announced the result for Half year 2017-2018, as it announced a profit of Rs 1.34 billion, up 31.37% as compared to Rs 1.02 billion in the same period of last year. Profits increased due to a substantial increase in market share in both domestic and export markets and lower effective tax rate of 15%.

Earning per share for the half year increased to Rs 7.64 as compared to Rs 5.80.

CHCC’s share price edged down to Rs 129.89, a decrease of 4.55% compared to its last day’s closing price with a turnover of 1.34 million shares at the time of filing this report.

The company has doubled its capacity and is undergoing a third expansion. The latest expansion, with the addition of Line-II, Cherat boasts a total capacity of 2.4 million tons. Cherat now has the capability of providing more than 5 percent of the cement given full industry capacity utilization.

Cherat Cement Company Limited manufactures, markets, and sells ordinary Portland cement and clinker in Pakistan. The company sells its products under the Cherat brand name.

Cherat is part of the Ghulam Faruque Group (GFG) and was established in 1981 with its plant located near the district of Nowshera, KP. The GFG group has a range of businesses as part of its operation with Cherat Cement and Cherat Packaging being the more prominent ones. The group also deals in sugar, energy & power and appliances. .



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